Securitas Q4 Profit Exceeds Forecast Amid European Growth
By Jesus Calero and Agnieszka Olenska
(Reuters) -Sweden's Securitas reported a bigger than expected jump in its fourth quarter core profit on Thursday, largely driven by strong growth in its security services business in Europe.
Its shares rose 2.5% by 0837 GMT, on track for their best day since early November if the gains hold.
Securitas is one of the leading providers of security solutions that protect assets, data and critical infrastructure for a range sectors such as government, retail, healthcare and finance.
Its quarterly operating earnings before amortisation (EBITA) grew 13% to 3.04 billion Swedish crowns ($278.5 million), beating analysts' average forecast of 2.98 billion crowns in a poll provided by the company.
The European business posted a 12% rise in fourth quarter EBITA, with security services in North America and the global technology and solutions unit also contributing to the growth, Securitas said.
The company added it was on track with its strategic plan and remained committed to its operating margin target of 8% by the end of 2025. It reached a margin of 6.9% last year.
Securitas proposed a dividend of 4.50 crowns per share for 2024, up from the 3.80 crowns per share it paid last year and above the 4.35 crowns expected by analysts, according to LSEG's IBES data.
The acquisition of Stanley Security, which Securitas closed in 2022, has added technology solutions exposure to its staff-intensive offering, but also loaded it with significant debt that it has been seeking to reduce in recent quarters.
"Late in the fourth quarter, we signed a put option agreement to divest our airport security business in France due to the limited opportunity to pursue our long term strategy at a healthy financial performance," CEO Magnus Ahlqvist said in the earnings statement.
($1 = 10.9149 Swedish crowns)
(Reporting by Jesus Calero and Agnieszka Olenska in Gdansk; Editing by Milla Nissi)
